RENT vs BUY

Should I buy or rent a piece of paradise in Hawaii?

… a question many Military members pond over. It can be overwhelming to buy an “Aloha” home, especially after seeing the price-tag. Please keep in mind that the VA loan for Hawaii is currently $721,050.

However, the more important question to ask yourself is, would you rather pay yourself or give your BAH away to fill someone else’s pocket. Regardless, you are paying mortgage – yours or your landlords! So, why not make it your own?

If you decide to purchase we would be honored to help you find your “Aloha” home. We understand that buying is not in everyone’s best interest and with the following information we hope to help you make an informed decision that is best for you (whether it is buying or renting):

Over the years homes on Oahu have had an exponential growth of value. For example, in 1987 the average cost of a single family home on Oahu was $190,000. Then in 2017, the average priced home was $755,000. The owners who purchased a house back then made a huge increase in net worth. See Annual Residential Resales Data for Oahu.

You build wealth through equity! Equity is the difference in what you owe and what the home is worth. Therefore when you make payments, it goes towards paying off your home opposed to your landlords.

Buying a home with a fixed rate mortgage, it will stay consistent for the duration of your loan. On the other hand, with renting, it could increase periodically.

You can not take a tax-write off for rent. You can write off the interest of your mortgage payments.

Homeownership also provides personal satisfaction. For many people, homeownership is a sign of independence and achievement.

Finding a rental on Oahu can be very frustrating; especially for pet owners. Landlords can ask for a high pet deposit.

Lastly and most importantly, you control the time span in which you live there. Renting comes with the understating the landlord has the authority to move you out when they want to sell it or move in themselves.